New Hampshire is situated in the northeastern portion of the country. It was one of the original colonies, and it is one of the oldest states in the nation. Nicknamed the Granite State, New Hampshire offers a unique culture, towering mountains, and delicious cuisine. The state is the birthplace of poet Robert Frost, and it is the home of the first public library in the United States. Of the 1.3 million people who reside in the state, many will be looking for a mortgage loan in the near future. Citizens of New Hampshire who need a mortgage should be familiar with the mortgage rates in the state.
New Hampshire Mortgage Rates
Mortgage rates in New Hampshire have decreased recently, so now is a good time to buy a home. You can get a fixed loan or an adjustable loan. For a 30-year fixed loan, the rate stands at 3.95%, and for a 20-year fixed loan, the rate is 3.77%. If you want a 15-year fixed loan, you can get a rate of 3.13%. For a 7/1 ARM, the rate is 3.16%, and the rate for a 5/1 ARM is 3.20%. A fixed rate mortgage will have the same rate throughout the loan. The longer the life of the loan, the more money you will be paying in interest. With an adjustable rate mortgage, your rate will fluctuate after an initial period. The rate will be lower for the initial period, and then it will increase, so make sure your budget can handle the increase.
Types of Mortgages in New Hampshire
After you decide whether you want a fixed or adjustable rate, you need to decide what kind of loan is best for you. The options include:
- FHA Loan: Is good for first time homebuyers and if your credit is less than perfect. The down payment amount could be as low as 3.5%
- VA Loan: Is good for people in the military or people who are retired military. The VA will offer 100% funding, so no down-payment is needed.
- USDA Loan: Backed by the US Department of Agriculture, this is a good option if your income is low.
- Conventional Loan: This loan is not backed by the federal government. You might only need a 3% down payment.
New Hampshire Mortgage Laws
The state has numerous laws in place to protect you from dishonest lenders. All lenders are required to be licensed by the state of New Hampshire. Lenders are required to present you with a Truth in Lending Disclosure and a Good Faith Estimate. These documents will tell you exactly what you will spend on the loan. They will state the APR, total number of payments, total cost of the loan, and any closing costs that you will pay. In addition, lenders are not permitted to discriminate against you because of your race, religion, gender, color, or handicap. Lenders must operate fairly and honestly.
Applying for a New Hampshire Mortgage
Lenders will pre-qualify you for a loan so you will know exactly how much you can spend on your home. When you apply for the mortgage, the lender will probably ask you to provide pay stubs, bank statements, tax returns, and W2 forms. Lenders will consider your credit score and income when approving you for a loan. An appraisal and inspection will be done on your home. After the underwriting department gives final approval, you can set up a time to close on the loan. You can then experience the thrills that come with being a homeowner.